Immutable, an Australian crypto gaming company that produces the NFT trading card game Gods Unchained, is letting go of 11% of its workforce, in addition to previous layoffs made in mid-2022, due to financial pressures and the decline of the cryptocurrency market. The company’s CEO has expressed regret over the impact of the cuts on employees’ lives.
Immutable’s Gods Unchained game involves using blockchain technology and non-fungible tokens (NFTs), which are unique digital assets that can be bought and sold. The game has gained popularity in the NFT community, and its NFTs have been sold for significant amounts of money.
The company had experienced significant growth over the past year, with its user base increasing by over 400%, and it had raised $60 million in funding to continue developing its products. However, the recent downturn in the crypto market and the need to maintain cash flow have forced the company to make further cuts to its workforce.
In his note to staff, CEO James Ferguson emphasized the need to ensure the long-term sustainability of the company, and said that the layoffs were a necessary step to achieve this goal. The company has not disclosed how many employees will be affected by the cuts, or which areas of the business will be impacted.
Immutable is not the only company in the crypto industry to have faced financial pressures in recent months. The cryptocurrency market experienced a significant downturn in late 2021, with many coins losing value, and this has had an impact on the financial performance of many companies in the sector.
Immutable will reportedly notify employees of their redundancy via email, followed by one-on-one meetings. The company is restructuring its organisation, including outsourcing video game development and refocusing spending on core areas, in an effort to overcome financial losses and remain a leader in the Web3 gaming sector. Despite the recent layoffs, the company remains optimistic about its long-term prospects and the potential of web3 gaming. The impact of the previous AU$200 million investment led by Temasek on the company’s finances is unclear.
Immutable’s recent layoffs and organisational changes come at a time when the company is facing increased competition in the Web3 gaming space. While the company has enjoyed success with its Gods Unchained game, it now faces competition from other blockchain-based games, including Axie Infinity and The Sandbox, as well as traditional video game companies exploring the potential of blockchain technology.
Immutable is betting on the continued growth of the Web3 ecosystem, which encompasses a range of technologies including blockchain, NFTs, and decentralized finance (DeFi), among others. The company aims to be at the forefront of this ecosystem, by developing innovative products and services that leverage these technologies.
Despite the challenges the company is currently facing, Immutable’s CEO remains optimistic about its future. In his note to staff, he emphasized the importance of remaining focused on the company’s long-term goals, and expressed confidence in its ability to navigate the challenges ahead.
It remains to be seen how Immutable’s latest round of layoffs and restructuring will impact the company’s future performance, and whether it will be able to maintain its position as a leader in the Web3 gaming space. However, with its strong focus on innovation and expertise in blockchain and cryptocurrency technologies, the company is well positioned to continue making an impact in this rapidly evolving industry.